Boeing looks for the inside track on huge British tanker deal

  • Bryan Corliss / Business Columnist
  • Tuesday, October 14, 2003 9:00pm
  • Business

While the 767 tanker lease deal continues to be debated in that other Washington, across the Atlantic, Airbus and the Boeing Co. are going at each other in an effort to win a tanker bid from the United Kingdom’s Royal Air Force.

The complexities of this British tanker deal would make John McCain’s head spin.

What Britain’s Ministry of Defense proposes is to completely outsource its military aerial refueling services. They’re looking to award a 27-year contract, worth an estimated $22 billion, to the entity with the best proposal for doing that.

Both Boeing and Airbus have formed coalitions with other defense and financing companies to pursue the bid.

What Boeing proposes is buying up British Airway’s fleet of about two dozen used 767-300 passenger jets and converting them. The Boeing consortium — which includes Airbus parent company BAE Systems, by the way — would hire military reservists to crew the planes. When they aren’t being used on military missions, they’d fly as civilian cargo carriers.

This arrangement would bring in revenue that would save British taxpayers of millions of pounds a year over the life of the contract, according to the Boeing consortium. It also would provide the Royal Air Force with more planes than what Airbus proposes — more bang for fewer bucks, so to speak.

Airbus, however, sees this as an opportunity to break Boeing’s global stranglehold on the multi-billion-dollar military tanker business, and in recent weeks, it has mounted an all-out attack on Boeing’s plans.

Airbus charges that converting used 767s, instead of new-built A330s, presents an engineering nightmare that would lead to cost overruns and delays. But at the same time, Airbus says it’s willing to substitute some used A330s in the mix, in order to bring down the cost or to put more planes in the air.

Airbus also says that its proposal would create more jobs in the U.K., which means its bid has crucial support from organized labor.

And with the U.S. Air Force expected to listen to bids for more tankers — when and if the debate over the first 100 767 tankerss ever gets resolved — Airbus is telling its supporters that today’s RAF tanker deal is a one-of-a-kind opportunity for Europe to prove it can provide tankers to the alliance tomorrow.

Boeing’s group is trying to debunk the Airbus claims, and has raised a few of its own — the big lumbering A330 will be more difficult for jet fighters to fly in close to, for example.

The debate won’t last much longer. The Ministry of Defense is expected to announce its decision before the end of the month.

Closer to home, the Machinists union plans a Friday afternoon rally in Auburn to press for approval of the 767 tanker lease, and to encourage Boeing to locate 7E7 production in the Puget Sound area.

Boeing is nearing a decision on where to locate the 7E7 final assembly plant, union spokeswoman Connie Kelliher said, and the Machinists want to demonstrate community and employee support for locating it here.

"The other locations are doing everything they can to be noticed," she said. "We don’t want them to forget about Washington state."

The union wasn’t fazed by Boeing’s Monday announcement that it plans to fly in major subassemblies, rather than rely on deep-water ports, Kelliher said.

"We don’t care if (the subassemblies) come by Pony Express," she said. "We can bring the ponies up to Everett."

The rally will start at 4 p.m. at the Machinists Auburn union hall, which is at 201 A St. SW.

Along with Machinists district president Mark Blondin, those speaking at the rally will be U.S. Sen. Patty Murray, U.S. Rep. Norm Dicks, state Attorney General Christine Gregoire, state Speaker of the House Frank Chopp and Charles Bofferding, the executive director of the Society of Professional Engineering Employees in Aerospace.

Reporter Bryan Corliss:

425-339-3454 or

corliss@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

The Verdant Health Commission holds a meeting on Oct. 22, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Verdant Health Commission to increase funding

Community Health organizations and food banks are funded by Swedish hospital rent.

Sound Sports Performance & Training owner Frederick Brooks inside his current location on Oct. 30, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Lynnwood gym moves to the ground floor of Triton Court

Expansion doubles the space of Sound Sports and Training as owner Frederick Brooks looks to train more trainers.

The entrance to EvergreenHealth Monroe on Monday, April 1, 2019 in Monroe, Wash. (Andy Bronson / The Herald)
EvergreenHealth Monroe buys medical office building

The purchase is the first part of a hospital expansion.

The new T&T Supermarket set to open in November on Oct. 20, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
TT Supermarket sets Nov. 13 opening date in Lynnwood

The new store will be only the second in the U.S. for the Canadian-based supermarket and Asian grocery.

Judi Ramsey, owner of Artisans, inside her business on Sept. 22, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Artisans PNW allows public to buy works of 100 artists

Combo coffee, art gallery, bookshop aims to build business in Everett.

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Everett-based Helion receives approval to build fusion power plant

The plant is to be based in Chelan County and will power Microsoft data centers.

The Port of Everett’s new Director of Seaport Operations Tim Ryker on Oct. 14, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Port of Everett names new chief of seaport operations

Tim Ryker replaced longtime Chief Operating Officer Carl Wollebek, who retired.

The Lynnwood City Council listens to a presentation on the development plan for the Lynnwood Event Center during a city council meeting on Oct. 13, 2025 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Lynnwood City Council approves development of ‘The District’

The initial vision calls for a downtown hub offering a mix of retail, events, restaurants and residential options.

Customers walk in and out of Fred Meyer along Evergreen Way on Monday, Oct. 31, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Closure of Fred Meyer leads Everett to consider solutions for vacant retail properties

One proposal would penalize landlords who don’t rent to new tenants after a store closes.

Everly Finch, 7, looks inside an enclosure at the Reptile Zoo on Aug. 19, 2025 in Monroe, Washington. (Olivia Vanni / The Herald)
Monroe’s Reptile Zoo to stay open

Roadside zoo owner reverses decision to close after attendance surge.

Trade group bus tour makes two stops in Everett

The tour aimed to highlight the contributions of Washington manufacturers.

Downtown Everett lumberyard closes after 75 years

Downtown Everett lumber yard to close after 75 years.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.